Local

AG Schneiderman targets payday loans

AG Schneiderman targets payday loans

Attorney General Eric Schneiderman says five companies that have been making collections on short-term “payday” loans will pay more than $300,000 in restitution and penalties under a settlement.

Schneiderman announced the agreement in Buffalo Monday at the annual convention of the Public Employees Federation.

He says the debt collection companies operating in Erie County also have agreed to stop making further collections on the loans, which violate state law because of their high interest rates.

Payday loans typically have interest rates from 100% to 650% or more — well above New York’s 16% cap for most non-bank lenders.

In August, Schneiderman’s office sued three Internet lenders that investigators said charged annual interest rates for personal loans at rates ranging from 89% to more than 355%.

Copyright 2013 The Associated Press.

More Local Headlines

8 minutes ago in Local

County to start using $100k dedicated for living wage payments

Fresh
money

With money allocated for this year's county budget, lawmakers are starting to figure out how to pay living wage to workers

13 minutes ago in Local

22 enter bids for casinos in New York

Fresh
casino

Wednesday was deadline to submit $1 million application fee for casino in locations across New York

15 minutes ago in Local

Flags to fly at half-staff for NY solider

Fresh
Local_News4

Specialist Kerry Danyluk of Texas was injured in Afghanistan, died days later at hospital in Germany

18 minutes ago in Local

New York soldier to be honored by Canadian government for bravery

Fresh
Local_News4

Staff Sgt. Jacob Perkins rescued people from bus on Thruway in 2011

yesterday in Local

O’Mara bill would allow NY farmers to grow hemp

State Senator Tom O'Mara speaks to area residents at a town hall meeting held at the Franziska Racker Centers in Ithaca, Wed. Feb. 12, 2014

State Senator Tom O’Mara has introduced a bipartisan bill that would allow farmers in the state to legally grow hemp.